How the UAE is cementing its fintech hub status

Can you elaborate on the strategic importance of UAE in eToro’s global expansion plans, and what factors contributed to the decision to establish a presence in the region?

As a global platform with a user base from over 100 countries and offices in multiple locations, looking at where we saw growing client demand meant the idea to expand our presence in the Middle East was a natural step in our global expansion.

eToro’s long-term strategy for the Middle East is built on recognising the region’s enormous growth potential, especially given its tech-savvy population and approach to both traditional and digital assets. The Middle East, particularly the UAE, is rapidly emerging as a hub for technological innovation and financial services, which aligns perfectly with our mission to make trading and investing accessible to everyone.

Gaining a presence in the UAE has been a multi-year project for eToro and a logical step for us, as the UAE has grown to become a renowned global financial centre and a bridge between East and West.

We have found Abu Dhabi offers a supportive business ecosystem for financial services companies like eToro, and the fertile investment landscape will undoubtedly lead to opportunities, partnerships and potential collaborations.

With the recent acquisition of the Financial Services Permission from ADGM, what opportunities do you have in the region?

Abu Dhabi’s financial hub status has expanded significantly over the years as the vision of the leadership is bolstering its Capital of Capital status, and the key to that growth has been the Abu Dhabi Global Market (ADGM). You have seen global businesses across various financial services verticals locate their operations here and it is a pleasure that we are now part of that thriving ecosystem.

For eToro it allows us to operate and offer our multi-asset offering from a highly-regulated and respected environment. We can develop our community when it comes to social trading and copy trading functionality across the various assets – securities, derivatives, and crypto assets.

In addition with our new license and growing team on the ground, we look forward to collaborating closely with local authorities and the financial community, and further tailoring our offerings to suit the preferences of UAE retail investors.

To what extent are the UAE regulatory environment and the country’s digital-first approach fostering fintech innovation? How does it contribute to the company’s growth strategy?

There is a remarkable interconnectedness and collaborative spirit that characterises the entire UAE. It transcends individual cities and creates a business environment that supports financial advancement and democratisation.  We view the UAE’s regulatory environment and support for fintech innovation as beneficial factors contributing to our growth and further expansion opportunities in the Middle East.

How is the company navigating the dynamic challenges and opportunities presented by the coexistence of conventional financial markets and the burgeoning realm of cryptocurrencies and blockchain?

We have created a community where users can connect, share, and learn, particularly assisting novice investors in navigating market volatility. Our users benefit from learning from each other, enabling them to adapt to changes in both traditional and crypto markets.

To further assist our users in navigating various market conditions, we established the eToro Academy, a free educational platform that is available in 10 languages, including Arabic. This resource is accessible to the general public, aiming to enhance their financial knowledge.

Ultimately, we believe in the importance of diversification, which is why we have built a multi-asset platform. On our platform, users can hold traditional assets such as equities, currencies, or commodities, alongside digital assets like crypto.

We have embraced AI enhancements into elements of offering from customer service to thematic smart portfolios offered on our platform.  This variety allows users to choose products catering to their investment objectives and risk appetite.

How do you plan to collaborate with local financial institutions and regulators in the UAE?

eToro, with over 34 million registered users from more than 100 countries, has a history of collaborative work with local regulators and communities. In the UAE, our goal is to leverage our global market and investing expertise to enhance opportunities for investors at all levels.

We prioritise adhering to and staying updated with local, regional, and international regulations. This commitment is evident in our developing relationship with ADGM and the Financial Services Regulatory Authority.

We are open to participating in regulatory ‘sandbox’ exercises, which allow for testing new products or services in a controlled environment. Additionally, we look forward to contributing to FSRA discussions on regulatory frameworks for crypto assets and financial services, offering our insights to help shape regulations that balance consumer protection with the need for innovation.

We will collaborate with local fintech hubs in the UAE to tap into local expertise and market insights and open doors to potential growth opportunities. We are eager to explore joint initiatives or partnerships that focus on developing new technologies, exploring novel applications, or enhancing financial services.

Read: Dubai FinTech Summit 2024: Catalysing the MEASA Financial Ecosystem